Scheme boosts Germany car sales

A scrappage scheme similar to that announced by Chancellor Alistair Darling has seen car sales in Germany rise 19% year-on-year in April, according to a report.

Germans are being given 2,500 euros (£2,220) in exchange for a vehicle more than nine years old and there were 380,000 new car registrations during the month, the BBC reported.

Mr Darling in his Budget this year had proposed a £1,000 government incentive, with manufacturers chipping in with an equal amount so that a customer in the UK would get a £2,000 discount on the purchase of a new car.

Carmakers hope the move will help sales pick up, as figures from the Society of Motor Manufacturers and Traders showed that car production in Britain had nearly halved in March 2009 when compared with the previous year.

Production in Germany had also fallen 34% in April and exports were down 48%. Meanwhile, France saw sales of new cars drop by 7% and Italy by 7.5%.